SWOT analysis on Indian ITeS sector

Strengthso Highly skilled, English-speaking workforce.o Abundant manpowero Cheaper workforce than their Western counterparts. According to Nasscom, The wage difference is as high as 70-80 percent when compared to their Western counterparts.o Lower attrition rates than in the West.o Dedicated workforce aiming at making a long-term career in the field.o Round-the-clock advantage for Western companies due to the huge time difference.o Lower response time with efficient and effective service.o Operational excellenceo Conducive business environment

Weaknesseso Recent months have seen a rise in the level of attrition rates among ITeS workers who are quitting their jobs to pursue higher studies. Of late workers have shown a tendency not to pursue ITeS as a full-time career.o The cost of telecom and network infrastructure is much higher in India than in the US. o Manpower shortageo Local infrastructureo Political opposition from developed countries Opportunitieso To work closely with associations like Nasscom to portray India as the most favoured ITeS destination in the world.o Indian ITeS companies should work closely with Western governments and assuage their concerns and issues.o India can be branded as a quality ITeS destination rather than a low-cost destination.o $69 billion ITeS business by 2010 o $97.5 billion IT (consulting, software solutions) market by 2010

Threatso The anti-outsourcing legislation in the US state of New Jersey. Three more states in the United States are planning legislation against outsourcing Connecticut, Missouri and Wisconsin. o Workers in British Telecom have protested against outsourcing of work to Indian BPO companies.o Other ITeS destinations such as China, Philippines and South Africa could have an edge on the cost factor.o Slowdown of demand